Commercial Restoration and Preservation Credit
INCOME AND PRIVILEGE TAXPAYERS – Effective for all taxable years commencing after December 31, 2021.
A tax credit shall be allowed for any taxpayer for the costs and expenses incurred for the restoration and preservation of a commercial structure at least 50 years old and the costs and expenses for the installation of fire suppression materials or equipment if the structure does not receive credits pursuant to K.S.A. 79-32,211.
Qualifications
To qualify for this credit, the commercial structure must be at least 50 years old. The costs and expenses for the restoration and preservation of the commercial structure must be equal to at least $25,000 and cannot exceed $500,000. The cost and expenses for the installation of fire suppression materials or equipment must be equal to at least $25,000 and cannot exceed $500,000.
Credit Amount
The credit amount for both the restoration and preservation of the commercial structure and the installation of the fire suppression materials and equipment is 10% of the costs and expenses.
Any unused credit may be carried forward in the next succeeding year or years until the total amount of the credit has been deducted from the tax liability, except no credit may be carried forward after the 10th taxable year succeeding the taxable year in which the expenditures were made.
Submit Application
A taxpayer must submit Form K-206 electronically to apply for this credit through our Customer Service Center at ksrevenue.gov. The application must be submitted between December 1st and December 31st of the year in which the costs and expenditures were made. Applications will be reviewed and processed in the order received until all applications have been processed or the $10 million cap has been reached, whichever comes first.
Transfer of Credit
The taxpayer acquiring credits (transferee) can use the amount of the acquired credits to offset up to 100% of the transferee’s income, privilege, or premium tax liability for either the taxable year in which the costs and expenses were made or the taxable year in which the transferee received the credit. Unused credit may be carried forward for up to five years, with all credits being claimed within ten years following the tax year in which the costs and expenses were made. To apply for the credit transfer, a Kansas Tax Credit Transfer Notification form, (Form K-260) must be completed and submitted to the Department of Revenue for review.
Procedures to Claim the Credit
You may download Schedule K-92 to claim the Commercial Restoration and Preservation credit. This schedule must be completed and submitted with the income or privilege tax return. You may also call the Department of Revenue voice mail system at 785-296-4937 to request Schedule K-92. You will be asked to give your name, address, phone number and form(s) you desire. Please allow two weeks for delivery of your forms.